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Up to 30% of enterprises could soon consider Identity Verification and Authentication Solutions unreliable in isolation
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By 2026, attacks using AI-generated deepfakes on face biometrics will mean that 30% of enterprises will no longer consider such identity verification and authentication solutions to be reliable in isolation, according to new analysis.

“In the past decade, several inflection points in fields of AI have occurred that allow for the creation of synthetic images. These artificially generated images of real people’s faces, known as deepfakes, can be used by malicious actors to undermine biometric authentication or render it inefficient,” said Akif Khan, VP Analyst at Gartner. “As a result, organizations may begin to question the reliability of identity verification and authentication solutions, as they will not be able to tell whether the face of the person being verified is a live person or a deepfake.”

Identity verification and authentication processes using face biometrics today rely on presentation attack detection (PAD) to assess the user’s liveness. “Current standards and testing processes to define and assess PAD mechanisms do not cover digital injection attacks using the AI-generated deepfakes that can be created today,” said Khan.

Gartner research said presentation attacks are the most common attack vector, but injection attacks increased 200% in 2023.  Preventing such attacks will require a combination of PAD, injection attack detection (IAD) and image inspection.

To assist organizations in protecting themselves against AI-generated deepfakes beyond face biometrics, chief information security officers (CISOs) and risk management leaders must choose vendors who can demonstrate they have the capabilities and a plan that goes beyond current standards and are monitoring, classifying and quantifying these new types of attacks.

“Organizations should start defining a minimum baseline of controls by working with vendors that have specifically invested in mitigating the latest deepfake-based threats using IAD coupled with image inspection,” said Khan.

Once the strategy is defined and the baseline is set, CISOs and risk management leaders must include additional risk and recognition signals, such as device identification and behavioral analytics, to increase the chances of detecting attacks on their identity verification processes.

Above all, security and risk management leaders responsible for identity and access management should take steps to mitigate the risks of AI-driven deepfake attacks by selecting technology that can prove genuine human presence and by implementing additional measures to prevent account takeover.

Photo by Ryoji Iwata on Unsplash

JD Power survey highlights biggest fraud concerns for US merchants
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Small business owners in the US are optimistic about the future, with 88% of those surveyed indicating the financial state of their individual businesses is about the same or better off than a year ago, which in turn the research asserts should bode well for the prospects of merchant service providers.

According to the J.D. Power 2024 U.S. Merchant Services Satisfaction Study, small business financial optimism is correlated with increased sales processed by merchant services providers. There are 94% of merchants that now accept debit or credit cards; 88% that accept digital wallet; and 54% that accept Buy Now, Pay Later (BNPL) payment methods.

However, when it comes to small business satisfaction with those services, scores are lowest among merchants for processing widely accepted payment types such as credit and debit card transactions and are highest for processing less widely accepted payment types like BNPL.

“We’re seeing an interesting disconnect in the merchant services marketplace whereby the most frequently processed forms of payment—credit and debit cards—generate the lowest levels of overall satisfaction among small business owners, while less common payment types such as BNPL, pay by bank and gift cards drive higher satisfaction,” said John Cabell, managing director of payments intelligence at J.D. Power. “Part of that is driven by demographics. Younger, newer business owners are more apt to accept a wide variety of payment types and have higher overall satisfaction with their merchant services providers. However, we’re also seeing some challenges across the board with debit and credit when it comes to delays in account funding, cost and fees and fraud management.”

Following are key findings of the 2024 study:

  • Credit and debit reign supreme on usage, but fail to deliver on satisfaction: Overall, 94% of small businesses accept debit or credit card payments. Most merchants have their credit card (81%) and debit card (80%) payments processed by their provider. Despite being the most processed forms of payment, overall merchant services satisfaction scores are lowest across all aspects of the customer experience among small businesses that have credit cards (692 on a 1,000-point scale) and debit cards (694) processed by their provider.
  • Satisfaction highest among businesses where BNPL is processed: Slightly more than half (54%) of small businesses accept BNPL and just 27% of merchants report processing BNPL with a profiled brand; satisfaction scores are highest (744) among small businesses that do have this payment type processed. Overall merchant services satisfaction rises as businesses process more payment options, reaching a high score of 793 among the 4% of businesses that cite six different payment types processed.
  • Gap emerges between small business innovators and traditionalists: Two distinct categories of small business owners have begun to emerge in the study dataset: innovators, who represent 47% of the study population and are younger, newer business owners who are more likely to accept a wide variety of payment types, and traditionalists, who represent 53% of the study population and are older and prefer cash, checks and in-person purchases. Overall merchant services provider satisfaction is significantly higher among innovators.
  • Cost, fraud risk and complexity emerge as top obstacles: Among small business owners who are unwilling to accept credit and debit cards, higher cost of acceptance and higher risk of fraud/theft are top reasons. Among those who are unwilling to accept BNPL, digital wallet or pay-by-bank payments, the primary reasons are difficulty of use/complicated process and too much effort versus other priorities.

Shopify ranks highest in merchant services satisfaction, with a score of 728. Paysafe (725) ranks second and Bank of America (713) ranks third.

The U.S. Merchant Services Satisfaction Study was redesigned in 2024. It is based on responses from 5,383 small business customers of merchant services providers and measures satisfaction across six factors (in alphabetical order): advice and guidance on running your business; cost of processing payments; data security and protection; managing my account; payment processing; and quality of technology. The study was fielded from September through November 2023.

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FRAUD PREVENTION MONTH: How retailers can mount a front-line defence
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In a retail sector where transactions occur in vast numbers daily, both in physical stores and online, the implementation of effective fraud prevention solutions is paramount. Anti-fraud professionals face a constant battle against sophisticated fraud schemes that threaten operational integrity and customer trust. Here are the key pillars for implementing effective fraud prevention solutions within retail…

1. Comprehensive Risk Assessment: The foundation of effective fraud prevention is a thorough risk assessment. Retailers must identify and evaluate the specific fraud risks pertinent to their operations, whether related to payment fraud, return fraud, or cyberattacks. Understanding these risks allows for the development of targeted strategies to mitigate them.

2. Multilayered Security Measures: Relying on a single fraud prevention technique is rarely sufficient. Implementing a multilayered approach, which could include encryption, tokenization, two-factor authentication, and advanced fraud detection algorithms, ensures a more robust defence against fraud. Each layer targets different aspects of fraud, making it more challenging for fraudulent activities to succeed.

3. Real-time Fraud Detection and Monitoring: The ability to detect and respond to fraudulent activities in real-time is crucial. Utilising advanced analytics and machine learning technologies can help in identifying patterns and anomalies indicative of fraud as they occur. Continuous monitoring of transactions and customer behaviour allows for immediate action to be taken, minimising potential damage.

4. Employee Training and Awareness: Employees are often on the front line of fraud prevention. Regular training programs can equip them with the knowledge to recognise and respond to fraud attempts effectively. Awareness campaigns can also foster a culture of vigilance among staff, ensuring that fraud prevention is seen as a collective responsibility.

5. Customer Education: Educating customers about safe shopping practices and how to protect their personal information can play a significant role in fraud prevention. Information on recognising phishing attempts, securing online accounts, and safely conducting transactions can empower customers to be part of the solution.

6. Collaboration and Information Sharing: Fraudsters often target multiple retailers with similar tactics. Collaboration among retailers and with law enforcement agencies can facilitate the sharing of intelligence about emerging fraud trends and effective prevention strategies. This collective approach enhances the ability of individual retailers to protect themselves and their customers.

7. Regular Review and Adaptation: The threat landscape is constantly evolving, as are the tactics used by fraudsters. Regularly reviewing and updating fraud prevention strategies in response to new threats and technological advancements ensures that retailers remain one step ahead. This includes revisiting risk assessments, security measures, and training programs to reflect the current environment.

In conclusion, iImultilayered security measures, real-time detection, employee and customer education, collaboration, and regular review, anti-fraud professionals can establish a strong defence against the ever-changing threat of fraud, safeguarding their operations and maintaining customer trust.

Are you searching for Fraud Prevention solutions for your organisation? The Fraud Prevention Summit can help!

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Brexit Revisited: The outlook for financial services four years later 
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On 31 January 2020, the UK officially left the European Union. After years of deliberation following the 2016 Referendum, the country officially left the EU at 23:00 GMT. In both the leadup to this date and the months after, there was much debate about how the UK would be impacted financially. 

Speculation was rife: Would new trading opportunities with non-EU countries be able to replace our position in the European single market? Would European firms move their operations away from the UK, leaving thousands of Brits jobless? The concerns of the Remain campaign were dismissed as scaremongering, as the Leave campaign envisaged a brighter future for the UK, unshackled by restrictive EU laws.

As the four year anniversary of Brexit approaches, we’re afforded a little more clarity over the actual impact of Brexit upon the UK’s financial services industry. The commercial finance experts at Anglo Scottish Finance have taken a look at which of the early Brexit predictions have proven to be accurate – and how the outlook is for the financial services sector going forward...

Key findings:

  • In the immediate aftermath of Brexit, 44% of the largest financial services firms and 37% of fintech companies in the UK planned to move part of their operations (and/or staff) to the EU. 
  • 2016 estimates predicted that 75,000 financial services jobs would move from the UK to the EU as a result of Brexit – the actual figure was estimated at about 7,000.
  • Financial services accounts for 50% of the UK’s entire trade services surplus. 
  • Financial services is a vital part of the UK’s international trade, accounting for over 19% of the UK’s services exports as of June 2022.
  • Between 2018 and 2021, there was an 18% decrease in financial services exports to the EU, and a 4% increase in exports to non-EU countries. 
  • Between 2019 and 2022, the UK’s GDP growth was lower than the OECD, G7 and EU27 average.
  • The UK financial services market stands to benefit from new trade terms with Korea – financial services are the UK’s second-largest services export to Korea. 

A mass exodus?

After Brexit, there were huge concerns over financial services firms leaving the UK, and leaving thousands of Brits jobless. In the immediate aftermath of Brexit, 44% of the largest financial services firms in the UK planned to move part of their operations (and/or staff) to the EU. 

The story was the same for fintech companies – 37% of firms interviewed by researchers at Anglia Ruskin University planned to at least partially relocate in the event of a no-deal Brexit. A follow-up study in 2023 found that 84% of the firms that had planned to leave the UK followed through with their plans. 

There was something of a deluge in terms of the number of companies leaving the EU between 2017 and 2021, however, which has stabilised since. This indicates that, while a big portion of the UK’s elite financial services companies did leave the UK in the wake of Brexit, most left soon after the referendum took place. 

There have been encouraging signs, however, both for the businesses who stayed, and in terms of businesses now looking to return. In spite of these issues, financial services has remained a vital driver of the UK economy, and accounts for 50% of the UK’s entire trade services surplus.

In December 2023, Dutch company Bunq, the second-largest neobank in the EU, announced plans to return to the UK having left the country after Brexit. 

During the same month, the UK and Switzerland announced a “first-of-its-kind” financial services deal designed to ally the two banking centres closer together. It is thought that the deal would not have been possible while the UK was in the European Union. 

So, though Brexit did cause an early exodus for some of the UK’s top financial firms, the sector has remained strong, and London remains a lucrative destination for European firms plotting a return. Meanwhile, the new deal with Switzerland aims to facilitate better business between financial firms, indicating an improved outlook for business with one of Europe’s top banking centres. 

The brain drain?

As elite firms announced plans to leave the country, the focus quickly shifted to UK jobs in the financial services sector and how they would be affected. 2016 estimates predicted that 75,000 financial services jobs would move from the UK to the EU as a result of Brexit – almost seven percent of the total number of jobs in the industry. 

In reality, though jobs were lost, these figures were dramatically inflated. Employment conditions for those working in financial services have been nowhere near as difficult as initially predicted. In 2022, the actual figure was estimated at about 7,000.

Heading into 2024, there have been concerns about Gen Z’s top European finance talents leaving the UK in favour of a return to Europe, where working conditions and the cost-of-living are thought to be more favourable. 

New regulatory policies are going some way to combat this in the financial sector, however. In October, the UK announced that it would remove the bonus cap it inherited from the EU, which dictates that variable pay cannot exceed 100% of fixed pay (or 200% with shareholder approval). 

This factor differentiates the UK from the rest of the EU, aligning it more closely with New York. Policies like this aim to ensure Britain – and London, in particular – remains a lucrative destination for top banking talent.

International trade 

Financial services remains a vital part of the UK’s international trade, and accounted for 19.1% of all UK services exportsas of June 2022. At the time of the referendum, one of the key arguments presented for Brexit was the country’s chance to become less reliant on EU trade and open up trading alliances with new countries. 

For many in 2016, particularly those that subscribed to Boris Johnson’s views, presented themselves as “Economists for Brexit,” arguing that leaving the EU would allow Britain to escape “growth-shackling European policies, freeing markets both internally and externally.” 

The end of Britain’s partnership with the EU undoubtedly necessitated new trade relationships and new trade priorities, but have these benefitted the country? 

Thanks to the pandemic, international trade performance has been skewed in the window between Brexit taking place and now. However, between 2019 and 2022, the UK’s GDP growth was lower than the OECD, G7 and EU27 average, indicating an overall slump from an international trade perspective. 

Between 2018 and the year immediately after actually leaving the EU, the UK witnessed a significant drop in financial services exports from the UK to the EU. There was an 18% decrease in exports of these services to the EU. Trade to non-EU countries proved an inadequate replacement, rising by just 4% in the same window. 

Despite this, new international trade agreements are opening doors to international trade with new markets with a view to negating that loss. 

The future trade outlook

In July 2023, the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including countries such as Australia and New Zealand, Mexico, Chile and Vietnam. However, alongside November’s Autumn Statement, the Office for Budget Responsibility noted that the deal would add just 0.04% to the UK’s GDP after 15 years.

In November 2023, talks began with South Korea over a new and improved trade deal. Financial services are the UK’s second-largest services export to Korea, and the sector would stand to benefit hugely in the event of strong trade terms being finalised. This deal will also see significant Korean investment into the UK, with investment in project finance, green infrastructure, investment banking and securities. 

Until then, however, the general consensus is that Brexit has done little to strengthen Britain’s trading position internationally, though Rishi Sunak is thought to be on the brink of a “landmark” multi-billion trade deal with India, which would represent Britain’s biggest trade alliance since leaving the European single market. 

The outlook? 

Four years on from Brexit, the results suggest that the UK financial services sector has not been impacted as strongly as might have been suggested previously. The UK, and particularly London, remains a hotspot for fintech innovation, while new opportunities for international financial services firms and dedicated policies aimed at recruiting the strongest talent suggest the future outlook is becoming brighter. 

However, the question remains – would the financial services industry remain stronger had we simply not left the EU? In the years since we left the EU, the value of the pound hasnever fully recovered to pre-Brexit levels. 

“It is difficult to look at Brexit within a vacuum…” comments Stuart Wilkie, Head of Commercial Finance at Anglo Scottish. “…particularly given the seismic other events that have taken place between now and then. An unparalleled global pandemic enormously impacted the finances of every country in the world, while war in Ukraine and the subsequent inflationary crisis have made it harder for the pound’s value to recover.” 

Going forward, questions remain over the efficacy of the UK’s new trade deals, and the real recruitment impact of policies such as the removal of the bonus cap are yet to be seen. Nevertheless, with fintech poised to play a key part in the UK’s transition to net zero, it’s vital that the financial services sector has remained strong, and was not impacted as heavily as previously thought by Brexit.” 

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DIGITAL IDENTITY VERIFICATION MONTH: Key considerations when choosing your next supplier
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In an era where digital interactions are the norm, the importance of robust digital identity verification cannot be overstated, particularly for anti-fraud professionals in the UK’s public and private sectors. The right digital identity verification solution can be the first line of defence against fraud. Here are top tips to guide these professionals in selecting the best solutions for their organisations, based on input from attendees at the Fraud Prevention Summit…

  1. Analyse Your Specific Verification Needs: Different organisations have varied verification needs based on their sector, size, and type of clientele. Begin by assessing what you specifically need from a digital identity verification solution. Are you dealing with high-value transactions, sensitive data, or a particularly tech-savvy customer base? Your specific context will dictate the features you need.
  2. Look for Comprehensive Multi-Modal Solutions: Opt for solutions that offer multi-modal identity verification methods. This includes biometric verification (like facial recognition, fingerprint scanning), document verification, and knowledge-based authentication. A multi-modal approach increases the robustness of the verification process.
  3. Prioritise Accuracy and Fraud Detection Capabilities: The core of a digital identity verification solution is its accuracy and ability to detect fraudulent attempts. Look for solutions with high accuracy rates and advanced fraud detection capabilities, like liveness detection, to ensure that the entity on the other end is genuine and present.
  4. Ensure Compliance with Regulations: Compliance with data protection regulations, such as the UK’s GDPR, is crucial. The chosen solution must not only safeguard personal data but also ensure that the collection, storage, and processing of data comply with legal standards.
  5. Integration with Existing Systems: The solution should integrate seamlessly with your existing IT infrastructure for a smooth workflow. Disparate systems can lead to inefficiencies and gaps in the verification process.
  6. User Experience is Key: While security is paramount, the user experience should not be compromised. A cumbersome or time-consuming verification process can lead to user frustration and abandonment. Look for solutions that are user-friendly and quick without compromising on security.
  7. Scalability and Flexibility: As your organisation grows, so will your verification needs. Choose a solution that is scalable and adaptable to evolving fraud tactics and technological advancements.
  8. Consider the Speed of Verification: In the digital world, speed is of the essence. A system that verifies identities quickly, without sacrificing accuracy, is ideal. Delays in verification can impact user satisfaction and operational efficiency.
  9. Evaluate Cost-Effectiveness: Consider the cost of the solution in relation to the benefits it brings. An expensive solution might be justified if it significantly reduces the risk of fraud and enhances customer trust.
  10. Stay Abreast of Technological Advancements: The field of digital identity verification is rapidly evolving. Stay informed about the latest developments and be prepared to update or change your solution as better technologies emerge.

In conclusion, selecting the right digital identity verification solution requires a balance of comprehensive verification methods, accuracy, legal compliance, system integration, user experience, scalability, speed, cost-effectiveness, and staying updated with technological advancements. By carefully considering these factors, anti-fraud professionals can effectively protect their organisations from the risks associated with digital fraud.

Are you looking for Digital Identity Verification solutions for your organisation? The Fraud Prevention Summit can help!

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SAVE THE DATE: Fraud Prevention Summit 2024
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Registration is now open for the Fraud Prevention Summit (formerly the Merchant Fraud Summit), which is taking place on November 6th 2024 at the Hilton London Canary Wharf.

Your complimentary guest pass includes:

– An itinerary, designed by you, of pre-qualified one-to-one meetings with solution providers

– A seat at the industry seminar sessions

– Lunch and refreshments throughout

– Networking breaks to optimise your opportunity to make new connections

Areas covered at the event include: Anti-fraud software, Charge back protection, Data analysis, Digital identity verification, Fraud management, Risk prevention solutions, Security software and much more.

Click Here To Register

Delegates can contact Jake Healy on 01992 374067 | j.healy@forumevents.co.uk to book your place or to find out more.

Alternatively, if you’re an industry supplier contact Jennie Lane on 01992 374 098 | j.lane@forumevents.co.uk.

If you specialise in Fraud Prevention Solutions we want to hear from you!
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Each month on Fraud Prevention Briefing we’re shining the spotlight on a different part of the market – and in February we’ll be focussing on Fraud Prevention Solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in Fraud Prevention Solutions and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 | j.lane@forumevents.co.uk.

Feb – Fraud Prevention Solutions
Mar – Risk Prevention & Compliance
Apr – Financial Crime
May – Multi-factor Authentication
Jun – Digital Identity Verification
Jul – Fraud Detection Tools
Aug – Anti Fraud Platforms
Sep – AI for Fraud
Oct – Chargebacks
Nov – Biometrics for Fraud prevention
Dec – Mobile Fraud Prevention
Jan – Digital Identity Verification

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Digital Identity Verification Month: Balancing trust with the need to eliminate risk
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In the UK, the landscape of digital identity verification is rapidly evolving, especially within the realms of commercial and public sectors. Anti-fraud professionals are continually adapting to the challenges posed by sophisticated cyber threats and the complexities of digital transactions…

Historically, identity verification in both sectors primarily relied on physical documents and in-person checks. However, with the digital transformation of services and the increasing prevalence of online transactions, this traditional approach has proven inadequate. The rise of identity theft, phishing, and other forms of cyber fraud necessitates a more robust and dynamic approach to identity verification.

One of the significant shifts in this area is the adoption of biometric technologies. Biometric verification, using unique biological characteristics like fingerprints, facial recognition, and iris scans, offers a higher level of security compared to traditional password-based methods. This technology is particularly effective in mitigating risks such as identity theft, as biometric data is extremely difficult to replicate or steal.

Another critical development is the implementation of multi-factor authentication (MFA). MFA adds an extra layer of security by requiring users to provide two or more verification factors to access a service or complete a transaction. This could include something the user knows (like a password), something the user has (like a smartphone), and something the user is (like a fingerprint). MFA significantly reduces the risk of unauthorized access, making it a valuable tool in the anti-fraud toolkit.

The use of artificial intelligence (AI) and machine learning (ML) in digital identity verification is also gaining traction. These technologies can analyse vast amounts of data to detect patterns and anomalies indicative of fraudulent activity. AI-driven systems can also learn and adapt over time, becoming more effective at identifying and preventing fraud.

Moreover, there is a growing emphasis on creating a seamless user experience in identity verification processes. Balancing security with convenience is crucial, as overly complex or time-consuming processes can lead to user frustration and abandonment of services. The challenge for anti-fraud professionals is to implement robust verification measures without compromising on user experience.

Data privacy and compliance with regulations like GDPR (General Data Protection Regulation) are also critical considerations in digital identity verification. Ensuring that personal data is collected, stored, and processed securely and legally is paramount to maintaining user trust and adherence to legal standards.

In conclusion, the evolution of digital identity verification measures in the UK’s commercial and public sectors reflects a response to the growing sophistication of cyber threats and the demands of a digital-first world. By embracing technologies like biometrics, MFA, AI, and ML, and balancing security with user experience, anti-fraud professionals are establishing more secure, efficient, and user-friendly identity verification systems. This approach not only combats fraud but also fosters trust and confidence among users, which is vital in the increasingly digital landscape of services and transactions.

Are you looking for Digital Identity Verification solutions for your organisation? The Fraud Prevention Summit can help!

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If you specialise in Digital Identity Verification solutions we want to hear from you!
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Each month on Fraud Prevention Briefing we’re shining the spotlight on a different part of the market – and in January we’ll be focussing on BPOS Verification & Chargebacks.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in Digital Identity Verification and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 | j.lane@forumevents.co.uk.

Jan – Digital Identity Verification
Feb – Fraud Prevention Solutions
Mar – Risk Prevention & Compliance
Apr – Financial Crime
May – Multi-factor Authentication
Jun – Digital Identity Verification
Jul – Fraud Detection Tools
Aug – Anti Fraud Platforms
Sep – AI for Fraud
Oct – Chargebacks
Nov – Biometrics for Fraud prevention
Dec – Mobile Fraud Prevention

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The Art of Deception: Five infamous fraudsters who fooled the masses
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Deep down, everyone wants to live a lavish lifestyle, right? No more worrying about money. Enjoying the finer things in life. Treating your loved ones to everything they’ve ever wanted and more. But how far would you be willing to go to get there? 

For the great grifters of our time, the law was certainly no object. These high-profile fraudsters made their fortune by deceiving investors, conning the public and living large off the profits. However, their malignant misdeeds eventually caught up with them.

To mark the 10th anniversary of the UK release of The Wolf of Wall Street, which chronicles Jordan Belfort’s journey from small-time salesman to convicted criminal, the commercial finance experts at Anglo Scottish Finance are taking a look at five of the biggest fraudsters of all time…

Jordan Belfort 

It’s impossible to talk about the world’s most high-profile scam artists without talking about Jordan Belfort. Immortalised on the big screen by Leonardo DiCaprio, Belfort’s life was a whirlwind of parties, drugs and ill-gotten gains. 

His firm Stratton Oakmont, founded in 1989, saw Belfort and his team running “pump-and-dump” schemes to defraud investors to the tune of roughly £158m ($200m). As part of these schemes, Belfort and up to 1,000 stockbrokers working under him, would give investors false promises or information to artificially inflate the price of a stock before selling at a high price. 

Once Belfort and his team sold their stocks the price would fall and his investors would lose their money. The Securities and Exchange Commission (SEC) eventually caught up with him, however, and he had to repay £86m ($110m) to his victims and serve four years in prison. 

Charles Ponzi

Ever heard of a Ponzi scheme? Charles Ponzi might not have invented this type of financial fraud, but he was so successful that the scheme came to be closely linked to his name. Ponzi, an Italian swindler born in 1882, was responsible for scamming investors out of over £15m (over £243m in today’s money). 

A Ponzi scheme refers to paying off previous investors with money sourced from new investors, creating a continuous cycle with no legitimate funds coming in. Ponzi was eventually caught out – the Boston Post wrote a series of articles exposing his fraudulent activities and he was eventually sentenced to five years in prison. He was later readmitted to serve a further seven years for a range of charges. 

Jho Low 

Malaysian businessman and fugitive Jho Low is considered one of the biggest scam artists in modern times. He is currently on the run from Malaysian authorities after a scheme to embezzle £3.56bn ($4.5bn) from the state-owned wealth fund 1Malaysia Development Berhad (1MDB) into his own account. 

Low was at the centre of the international scandal, with payments from US bank Goldman Sachs diverted into offshore accounts and seemingly used for investment companies, superyachts and glitzy parties. 

Choice elements of his high-profile social life included associations with Paris Hilton, Jamie Foxx and Busta Rhymes, amongst others. DiCaprio was another A-list friend and in a bizarre set of full-circle circumstances, Low invested £79m ($100m) in the production of The Wolf of Wall Street.

Low remains on the run from the Malaysian authorities and is supposedly hiding in China. The Chinese government has denied harbouring Low, who maintains that the charges against him are politically motivated. 

Bernie Madoff 

Meet the man behind the largest Ponzi scheme in history. Bernie Madoff was responsible for conning his investors out of an unbelievable £51 billion ($65 billion), making him perhaps the most profitable scam artist in history. Hiding a shady asset management business behind a legitimate trading arm allowed Madoff to hide in plain sight for years.  

Madoff was so well-known and respected that he was, at one point, the Chairman of the NASDAQ Stock Exchange. His eponymous firm, Bernard L. Madoff Investment Securities, served as a vehicle to defraud investors for many years. 

As the 2008 financial crash began to come to light, Madoff realised he was stuck: he was unable to pay back investors even a portion of what they were owed. He informed his sons, who had both been working under him, that the business was a lie. They subsequently turned him in and Madoff had the book thrown at him. 

He received the maximum sentence of 150 years in 2009 and eventually died in prison in 2021. 

Hushpuppi

Exotic watches, fast cars, charter flights and helicopters. Pretty exciting for a boy who started as a second-hand clothes seller in Lagos, right? Nigerian hustler Hushpuppi established a lavish Instagram lifestyle that flamboyantly displayed his rags-to-riches story, but he was eventually found to be behind a huge phishing scam and money laundering operation. 

Hushpuppi was a ‘key player’ in an international scam network that obtained money illegally via “business email compromise scams, online bank heists and other cyber-enabled fraud.” Perhaps most notably, he was accused of conspiring to steal £97 million ($124 million) from an unnamed Premier League club. Neither the Premier League nor the club involved decided to comment. 

The scammer was arrested in Dubai in 2020 and expedited to the US to face trial for his misdeeds. One scam shut down payment systems across Malta as he tried to launder £10m ($13m) stolen by North Korean hackers. He received a prison sentence of eleven years in 2022. 

So, if there’s anything that you can learn from the five highest-profile fraudsters of all time, it’s that crime doesn’t pay. All of these scammers lived a lavish lifestyle thanks to their crimes but were ultimately forced to pay the piper. As ever, with a Ponzi scheme, or any other kind of financial crime, your luck will eventually run out.